A Study On The Financing Behaviors Of The Listed Company In China Based On The Share-holding Structure

Listed companies in China are inclined to equity financing ,while the western theory and proof studies ,a preference to internal financing, debt financing second and then equity financing, this is the pecking order of theory. Why financing ways of listed companies in China are different from this theory? Many scholars think that the reason is the lower cost of financing , but, the fact is not so. The cost of financing is not the only factor. For this paper is based on the relative analysis of equity structure and financing modes, indicates that the causes of equity financing are many-fold, a major one being China's special share-holding structure and corresponding institutional factors including corporate governance structure, incentive mechanism.In order to testify my study, the paper employs further the multi-returning model to proof-study and shows the results: the finance-raising of the companies is dynamic while the capital structure is comparatively static, therefore, the influences of the institutional factors such as share-holding structure upon finance-raising are not so explicit when they are reflected on the relationship between capital structure and debt-asset ratio; however, the influences will be postponed and will also express themselves in the successive period as to the variation ratio of the debt-asset ratio. To be more specific, there is an obvious relevance of the capital structure index, i.e., the variation ratio of debt-asset ratio to such indexes representing share-holding structure as share concentration, the proportion of national shares and legal person ratio. Meanwhile, the non-institutional factors, namely proof-study and shows the results:, profitability, size, growth, bankruptcy risk and agent cost will also cast influences on financing and further still, on the capital structure of enterprises.In conclusion, the share-holding structure of the listed companies in China must be first optimized in order to enhance finance raising. As a matter of fact, equity financing is never the optimal way of financing. Other than share-holding structure optimization and the active facilitation of reforms on proprietary disposal, some other measures should also be taken into consideration, namely, the further improvement of the companies' management structure, the establishment of the taxing and financial system beneficial to inside accumulation, the active development of enterprise's securities market and the shaping of diversified direct-financing means, in order to change the currently excessive preference of domestic listed companies to equity financing. Only by doing so could the financing of the listed companies develop towards a more rational direction within a sound financial system.